International Swaps and Derivatives Association – ISDA
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Definition: International Swaps and Derivatives Association – ISDA
Operating since 1985, ISDA is a trade organization that has been working in market of over the counter derivatives. It is an association formed by members from all over the world and has it’s headquarter in New York.
• Identify risks and reduce it by improving private negotiated derivatives
• Engagement with policymakers and legislators around the world to understand the treatment of derivatives as a risk management tool.
Its three important functional areas are:
1. Reduce counterparty credit risk
2. Increase transparency
3. Improve industry’s operational infrastructure
Today this association is an 800 member organization from over 64 countries. Its members include broad range of derivatives market participants like investment managers, government companies, insurance companies, and corporates, international and regional banks along with law firms, exchanges, clearing houses and repositories.